Pattern Energy Group LP (PEG LP) has closed the financing and started construction of its Panhandle Wind project, a 218 MW wind farm located in the Texas Panhandle.
Panhandle Wind will sell power to Citigroup Energy Inc. under a long-term hedge off-take agreement. GE Energy Financial Services and Citigroup Global Markets Inc. will invest structured equity in the project. Financial details were not disclosed.
PEG LP – which developed the project and is serving as the project's managing member and will provide operations and maintenance – is receiving construction loans from BayernLB, Credit Agricole Corporate and Investment Bank, Nord/LB, Landesbank Baden-Wuerttemberg, RBC, RBS, and Societe Generale.
Mortenson is overseeing construction of Panhandle Wind, which will use 118 GE 1.85 MW turbines, as well as construction of a 345 kV substation, transmission line and operations facility. Completion is expected in August 2014.
Tim Maag, vice president and general manager of Mortenson Construction's U.S. Wind Energy Group, notes that the company is happy to work with Pattern on Panhandle Wind, the 11th project the two companies have partnered on.
PEG LP CEO Mike Garland adds that the project will be among the first in the Texas Panhandle to utilize Texas' new competitive renewable energy zone (CREZ) transmission infrastructure. He also says the project will help boost the region's economy.
‘This project will provide multiple benefits to Carson County and its residents, including more than 200 construction jobs, at least 12 permanent operations and maintenance positions, and clean energy for up to 60,000 Texas homes without using any of the region's limited water supplies," comments Garland.
Upon completion of construction, Pattern says it will donate over $800,000 to establish the Panhandle Wind Community Fund to support civic and educational causes in Carson County. Panhandle Wind will continue to make annual contributions to the Community Fund over the next decade.